Summer driving is coming, but $80 bucks per barrel between now and then might be a stretch. If it did happen though, the Washington switchboards would be shut down due to people calling in to raise hell...

I work in the oil and gas industry and while I definetly support the expansion of domestic drilling, hence why I get paid to do what I do, the President or government for that matter has little effect on the price of gas. Government can create a favorable environment but even that wouldn't show positive signs at the pump for years. It boils down to supply and demand its really not rocket science.

So when you hear a President or Presidential canidate telling you he can lower gas prices he is just blowing smoke up your ass.

California and New York are not examples that help your point thanks to state and county taxes. Orlando as the travel capital of the US, likewise, isn't a good example as demand in that area is skewed vastly from the mean.

quote:I work in the oil and gas industry and while I definetly support the expansion of domestic drilling, hence why I get paid to do what I do, the President or government for that matter has little effect on the price of gas. Government can create a favorable environment but even that wouldn't show positive signs at the pump for years. It boils down to supply and demand its really not rocket science.

Right. But don't forget about monetary policy. When the federal government deficit spends they are forced to borrow. At the rate the treasury borrows they force the Federal Reserve to implement poplicies like QE 1, QE 2, Twist 2, and ZIRP. These policies weaken the dollar relative to crude oil.

There are many reasons for the high prices at the pump but currently monetary policy is the main driver.

Anybody want to guess what the true price of gasoline would be if you got rid of the tax breaks, subsidies & credits? If you are for smaller govt, would you want to transfer these expenses (about $4 billion per year) to the individual? We have had it good here in the US with artificially low prices.

quote:Anybody want to guess what the true price of gasoline would be if you got rid of the tax breaks, subsidies & credits? If you are for smaller govt, would you want to transfer these expenses (about $4 billion per year) to the individual? We have had it good here in the US with artificially low prices.